Bitfarms Bitcoin Mining Company Acquires 1,000 Bitcoin

A Nasdaq-listed Bitcoin mining corporation purchased 1,000 Bitcoin during the first week of January 2022. Thus, the company’s holdings of Bitcoins have increased to 4,300 BTC tokens.

The Canadian corporation disclosed its acquisition of approximately $43.2 million worth of Bitcoins in a report published on Monday. This purchase increased their holding of the token by 30% over its prior storage balance.

Bitfarms is a market leader in both the United States and Canada when it comes to bitcoin mining. The company’s shares were listed and began trading on the TSX-V (TSX Venture Exchange) in July 2019, and on the Nasdaq Stock Market in June 2021.

Recently, the crypto mining firm expanded into the United States, purchasing a 24-MW crypto mining plant in Washington.

Emiliano Grodzki, the CEO of Bitfarms, said that the company’s guiding philosophy is to acquire as much Bitcoin as possible while selling at the lowest feasible cost in the shortest amount of time possible for the benefit of its shareholders. He predicted that by using this technique, the corporation would constantly improve its capital allocation.

Additionally, Grodzki said that Bitfarms will adhere to its operational guiding approach. Simultaneously, the business will meet its 8EH/S (ExaHash/Second) target by year’s end.

Apart from BitFarms, another prominent investor, MicroStrategy, announced the acquisition of about 1,914 BTC. Over $94.2 million was exchanged in this transaction or $48,229 per BTC unit. The corporation incurred some losses on the transaction, but cryptocurrency holders do not trade the coin on a weekly or daily basis. As a result, you should avoid MicroStrategy that results in long-term losses.

Significant Bitcoin investors, on the other hand, who aim to retain the token for years to come, have been unable to back up BTC in recent weeks. This indicates a short-term slump, as well as the presence of more sellers in the coin’s market.

At the moment, investors are exerting tremendous pressure on cryptocurrencies, as a consequence of rising Treasury rates. Investors and traders flee riskier digital assets in an environment of rising interest rates, a negative trend for Bitcoin and other altcoins.

However, we are unsure if Bitcoin will have adequate support to maintain a price above the $40,000 mark if Treasury rates continue to rise.

Bitcoin has gone below $40K at the time of writing. Any further decline below this level might precipitate a large sell-off, indicating that Bitcoin has fallen below the $39,000 support barrier.

Also Read: El Salvador Is Considering Offering Low-Interest Bitcoin Backed Loans To Small Businesses